Latest figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in June 2023 by 18% compared with the same month in 2022. In the first half of 2023, new business was 15% higher than in the same period in 2022.
The business new car finance and commercial vehicle finance sectors reported new business up in June by 89% and 23% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a fall in new business of 7% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market reported a strong performance in the first half of 2023 driven by a rebound in the vehicle finance markets as supply shortages eased. The high inflationary environment has led to growth in average advances, but we have also seen growth in volumes.”
“The industry supports businesses of all sizes and across all industry sectors to invest in vehicles, equipment and machinery that is vital to building a more sustainable future. The first half of 2023 saw new lending to SMEs increase by 13% and to larger businesses by 15%. Over that period, new asset finance lending to businesses in the services sector grew by 14%, in the construction sector increased by 19%, and in the manufacturing sector grew by 21%.”